Fitch: Sulfindo unchanged

Fitch Ratings said it does not expect PT Sulfindo Adiusaha's long-term issuer default rating of B to be immediately affected if the company decides to abort its planned bond issue.

The outlook is stable.

A postponement of the bond issuance will not in itself result in a negative rating action as Sulfindo is expected to have ample liquidity in 2011 provided it is able to fully fund its investment in the construction of a power plant, the agency said.

Sulfindo had planned to issue dollar-denominated senior secured notes to refinance existing debt and also to finance part of the construction of the power plant, Fitch said.

According to the company, the planned bond issue will likely be temporarily shelved and Sulfindo is now considering alternative financing options, the agency said.

The company's credit profile is constrained by its small size, concentration of its production facilities on a single site and limited geographical and product diversification, Fitch said.

The rating is supported by its position as one of two fully integrated producers of chlor-alkali in Indonesia, its solid market position in the domestic chlor-alkali and PVC product markets, improving profitability and better industry fundamentals, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.